Liens Flashcards
What
1)
2) 3x Main Types – 1) 2) 3)
What
1) Right to keep possession of property belonging to another person until a debt owed by them discharged
2) 3x Main Types – 1) Common Law (Retaining) 2) Equitable (Preserving) 3) Statutory – S. 73 SA1974
Common Law Lien – A Retaining Lien
3) Welsh v Hole (1779) -
4) Gavin Edmonson Sols v Haven Insurance [2018]:
5) Loescher v Dean (1950) -
6) Leo Abse Cohen v Jones Builders (1984) -
7) Withers LLP v Langbar International (2011) -
8) Your Response v Data Team (2014) –
Common Law Lien – A Retaining Lien
3) Welsh v Hole (1779) - Solicitor who has had ‘honest and fair dealing’ with client entitled to be paid and have protection for payment
4) Gavin Edmonson Sols v Haven Insurance [2018]: retaining = defensive remedy
5) Loescher v Dean (1950) - Lien will apply to any property acquired by solicitor in exercise of professional duties
6) Leo Abse Cohen v Jones Builders (1984) - Solicitor discharged by clients entitled to hold all papers until fees paid
7) Withers LLP v Langbar International (2011) - Applies to monies in client account for general purposes
8) Your Response v Data Team (2014) – tangible not electronic data
Equitable Lien – A Preserving Lien
9) Read v Dupper (1795) -
10) Barker v St Quinton 1844:
11) Gavin Edmondson Ltd v Haven Insurance Ltd (2018); Bott v Ryan Air (2022) -
Equitable Lien – A Preserving Lien
9) Read v Dupper (1795) - Lien is over the ‘fruits of litigation’. Only applies to property recoverable under court order or negotiated settlement
10) Barker v St Quinton 1844: preserving = security or charge
11) Gavin Edmondson Ltd v Haven Insurance Ltd (2018); Bott v Ryan Air (2022) - Does not depend on possession - operates on any fund due to client obtained by solicitor’s industry (does not need to be proceedings – could be ADR)
Statutory Lien
12) S.73 SA 1974:
Statutory Lien
12) S.73 SA 1974: statutory right
General Points
13) Not able to
14) Common law lien – Right to – not able to
15) General and statutory liens – can enforce unpaid costs against security, but only with court order.
General Points
13) Not able to hold as lien more than outstanding costs
14) Common law lien – Right to retain property only – not able to realise security
15) General and statutory liens – can enforce unpaid costs against security, but only with court order So for example, would need order for sale of property.
How to Avoid Liens
1)
2) Candey Ltd v Crumpler (2022) -
3) Robins v Goldingham (1872) -
4) Bentley v Gaisford (1997) - BEWARE –
Avoiding Liens
1) Payment of outstanding costs – automatically releases lien
2) Candey Ltd v Crumpler (2022) - Provision of alternative security for outstanding costs – defeats lien
3) Robins v Goldingham (1872) - Solicitor’s undertaking to preserve lien constitutes alternative security
4) Bentley v Gaisford (1997) - BEWARE – Copying papers to client will breach undertaking (So, if you are new solicitor that has given undertaking, make sure do not copy papers to client)